Nevertheless, CEO James Whitehurst remains optimistic. "Red Hat continues to benefit from enterprise customers that are seeking to leverage their IT infrastructure to drive significant productivity gains and agility across their organizations," he said "We will continue to expand our storage solutions in cloud computing and big data storage, and believe that Red Hat is well positioned to deliver disruptive solutions in the large and growing storage market."

In Q3, revenue jumped 23% year-over-year to $290 million. The company also reported EPS of $0.28, which excluded non-recurring items. Both numbers beat expectations.